NSSF teams up with SDIC to boost asset value
China's National Council for Social Security Fund has signed a framework agreement with State Development and Investment Corporation (SDIC) to boost the value of the state pension fund and state-owned assets.
Through the partnership, NSSF will cooperate with SDIC to invest in private equity funds, securities investment funds, and other products, the pension fund said in a statement on Thursday. The two parties will share investment expertise with a view to broadening their presence in the industry on a mutually beneficial basis.
Founded in 1995, SDIC is a state-owned investment holding company approved by State Council and one of the key SOEs under direct management of the central government. With assets of RMB280 billion ($44 billion), it is the largest state-owned investment holding company in China.
SDIC operates its business by increasing invested enterprises' value through management, generating returns through equity transfer premiums and dividends. It participates in the industrial, financial and service industries. As of December 2010, five companies had merged with SDIC, following approval from the State-owned Assets of Supervision and Administration Commission (SASAC).
Established in August 2000 by the State Council, the NSSF has sought to expand its asset value through various partnerships. In February, it teamed up with financial software provider EFront to improve efficiency and risk control.
NSSF had assets of more than RMB850 billion by the end of 2010 and has achieved an average annual yield of 9.8% since its establishment.
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